Credit rating rationale. The issues represents senior unsecured debt of JSC “ALFA-BANK” (hereinafter, Alfa Bank, or the Bank). Due to the absence of either structural or contractual subordination of the issues, ACRA regards them as pari passu to other existing and future unsecured and unsubordinated debt obligations of the Bank. According to the ACRA methodology, the credit rating of the issues is equivalent to that of the Bank, i.e. AA(RU).

The credit rating of Alfa Bank is based on its strong and stable business profile, adequate capital adequacy position as well as satisfactory risk profile assessment. The rating is additionally supported by moderate systemic importance of the Bank for the Russian financial market.

The credit rating of Eurobonds (ISIN XS1648266788) issued by JSC “ALFA-BANK” (actual issuer: Alfa Bond Issuance Plc) was published on February 17, 2017 for the first time. A credit rating has been assigned to BO-39 series bond issued by JSC “ALFA-BANK” for the first time. The credit ratings are expected to be revised within one year following the rating action date (March 5, 2018).

The assigned credit rating is based on the data provided by JSC “ALFA-BANK”, information from publicly available sources, and ACRA’s own databases. The credit rating is solicited, and JSC “ALFA-BANK” participated in its assignment.

No material discrepancies between the provided information and the data officially disclosed by JSC “ALFA-BANK” in its financial statements have been discovered.

ACRA provided additional services to JSC “ALFA-BANK”. No conflicts of interest were discovered in the course of credit rating assignment.

Analytical Credit Rating Agency (ACRA) was founded in 2015, with its 27 shareholders representing major Russian corporate and financial institutions and its authorized capital exceeding RUB 3 bn. ACRA’s main objective is to provide the Russian financial market with high-quality rating products. Methodologies and internal documents of ACRA are developed in compliance with the Russian legislation and with regard to global rating industry best practices.

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